Simon Property Group delivered strong Q2 2026 results with accelerated NOI growth, raised full-year guidance, and highlighted robust tenant demand despite a large bankruptcy-related space return. The company is also pushing into new revenue streams like advertising and media networks. Domestic property NOI grew 8.5% and real estate FFO per share grew 7.9% in Q2.
Simon Property Group delivered strong Q2 2026 results with accelerated NOI growth, raised full-year guidance, and highlighted robust tenant demand despite a large bankruptcy-related space return. The company is also pushing into new revenue streams like advertising and media networks. Domestic property NOI grew 8.5% and real estate FFO per share grew 7.9% in Q2.
Management reported broad-based tenant demand with no slowdown, signing over 1,200 leases in Q2, with new deals up more than 20% year-over-year. Sales growth remains strong at 13.9% per square foot, and the leasing pipeline is ahead of last year's pace, though guidance assumes…
Domestic property NOI grew 8.5% and real estate FFO per share grew 7.9% in Q2.
Full-year 2026 real estate FFO guidance raised to $13.20-$13.30 per share, an 8% increase from prior year.
Re-leased 1M sq ft from Saks OFF 5TH bankruptcy at more than double the previous rent.
Eli Simon noted AI is still early days but is already yielding real efficiencies and insights in managing the vast portfolio of leases and marketing. He highlighted AI as a big component of the upcoming Simon Media Network, leveraging customer data for advertising, and expressed a bullish view that AI strengthens the case for physical retail.
Management reported broad-based tenant demand with no slowdown, signing over 1,200 leases in Q2, with new deals up more than 20% year-over-year. Sales growth remains strong at 13.9% per square foot, and the leasing pipeline is ahead of last year's pace, though guidance assumes some moderation in sales.
Management emphasized continued reinvestment in their portfolio, with 4 billion dollars of development projects underway or recently approved, generating 9% returns. They highlighted a $400 million commitment to center enhancements and a strong balance sheet supporting future reinvestment, without signaling any cut to capex.
Management delivered consistently positive results and forward commentary, highlighting accelerated growth, broad demand, and a robust pipeline, with no signs of concern.
“if you look at the boxes in the outlets, they were paying $18 million in rent. The deals we have signed today are already, which about half the space are already well in excess of that... we'll basically take the $18 million and turn it in…”
“we will be launched in the next couple of weeks to launch Simon Media Network... it's a business that's growing at double digits, mid-teens percent year over year.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $13.20–$13.30 | $13.25 | RAISED |